Thruway gets OK to apply for $1.5B TZ Bridge loan

WASHINGTON — The federal government has formally invited the New York State Thruway Authority to apply for a low-interest loan to help finance the $3.1 billion construction of the new Tappan Zee Bridge.

The widely expected invitation came after the U.S. Department of Transportation completed a review of the authority’s creditworthiness, or its ability to repay this so-called TIFIA (Transportation Infrastructure Finance and Innovation Act) loan, as well as raise the rest of the money for the project. The authority wants a loan of up to $1.5 billion and plans to sell bonds to cover the remainder. Toll revenues would be used to repay the loan and the bonds.

Once the authority submits the additional documentation that the DOT has requested for the application, a decision on the size of the loan could be made within 90 days. Then credit and business terms will be negotiated.

The Thruway Authority sold $700 million in short-term notes earlier this month to pay for ongoing construction costs through Dec. 31.